Shenzhen Zhaowei Machinery & Electronics (HKG:2692) launched its Hong Kong initial public offering on Friday, aiming to raise up to HK$1.97 billion.

The Chinese micro transmission and drive system products maker is offering 26,748,300 H shares at an indicative price of up to HK$73.68 per share, according to a Hong Kong bourse filing.

The offering comprises 2.7 million H shares for Hong Kong investors and 24.1 million H shares for international investors, subject to reallocation.

The company secured 21 cornerstone investors, who committed to subscribing to 8.8 million of the IPO shares.

The issuer expects to determine its final offer price on or before March 5 and disclose the allocations on March 6. It will start trading on the Hong Kong bourse on March 9.

Net proceeds will primarily be used for global research and development, expansion of the company's product capacity and portfolio, and to pursue global investments and acquisitions.

China Merchants Securities (HK), Deutsche Bank, CLSA, ABCI Capital, ABCI Securities, BOCOM International Securities, Futu Securities International (Hong Kong), Yellow River Securities, Open Securities, and I Win Securities are the joint bookrunners of the IPO.